Stocks waiver, metals gain as markets digest Middle East news

investmentnews.com:

Miners kept Europe’s stock benchmark afloat on Monday after prices for copper and gold surged to all-time highs. Oil held gains as the market watched for any fallout from political ructions in two of the world’s major crude producers.

The Stoxx Europe 600 Index was little changed, with the basic resources sector outperforming while car makers and technology stocks lagged. Futures on the S&P 500 and Nasdaq 100 edged higher. The MSCI AC Asia Pacific Index advanced for a seventh day, with the materials sector posting the biggest percentage increase. 

The timing of the Fed’s likely pivot to rate cuts has shaped trading across financial markets in recent days. The Dow Jones Industrial Average of blue chips closed above 40,000 for the first time on Friday, and optimism about US easing helped gold surge to an all-time high on Monday.

Investors are keeping an eye on the Middle East after Iranian President Ebrahim Raisi and the nation’s Foreign Minister died in a helicopter crash. There are also concerns over the health of Saudi Arabia’s king.

Bloomberg’s dollar index was flaty after dropping last week when data showed US inflation eased more in April than economists expected. Treasury yields were steady. A number of Fed officials are due to speak this week, including Governor Christopher Waller who is set to talk specifically about the US economy and monetary policy.

Copper surged to its highest-ever level, extending a months-long rally driven by investors who’ve piled into the market in anticipation of deepening supply shortages. Futures on the London Metal Exchange jumped past $11,000 for the first time.

Developments in the Middle East have the potential to spur haven demand, even though oil posted only slight gains on